[93] In 1877 the Banks pressed strongly for a relaxation of this provision. But the Secretary of State held that “the concession of a power of creating a foreign agency in England, such as would be the result of entering into loan transactions of the nature of those contemplated, would admit of the Banks locking up a large portion of their capital at so great a distance as to render it practically unavailable in the case of any emergency arising in India.” This argument is not one which would be likely to be used at the present time. The fear would rather be lest they should lock up funds in India. [94] Up to 1907 the maximum period was three months. [95] See §§ 36–38 of Chapter VI. [96] The rupee has been converted at the uniform rate of 1s. 4d. throughout. [97] This is the date of the foundation of this Bank under its present style, but it was formed out of the old Chartered Mercantile Bank of India, London and China, which dates much further back. [98] The Chartered Bank, in spite of its name, has never done business in Australia. [99] But not exclusively. The National Bank, for example, has a large interest in East Africa; this coast has considerable trade connexions with India, and the rupee has a fairly wide circulation there (see figures of rupees exported given on p. 154). [100] The New Oriental Bank, established in 1885 (the great Oriental Bank Corporation had failed in 1884), went into liquidation in 1893. [101] I fancy that it has more the character of an Indian Joint Stock Bank and less of the character of an Exchange Bank than the others. [102] The Eastern Bank was established under the auspices of Messrs. E. D. Sassoon, while two important French Banks and Messrs. Brown, Shipley, and Co. are represented on the board of directors. [103] There is of course much business of a semi–banking character transacted by financial and mercantile houses, some of them of the first magnitude, with establishments both in India and London. But they are private firms and publish no information about their business of which it is possible to take account. [104] Another method occasionally worth while employing is the purchase of Government Rupee Paper in London and its sale in India. [105] The volume of bills, drawn in India on London and outstanding, is not, of course, a correct measure of the extent to which India is being financed abroad. A bill may be used to finance the foreign purchaser just as much as the Indian seller. For example, a dealer in cotton in India might be paid by a 3 m/s Bank credit supplied by the buyer, a Continental spinner; this spinner might get the cotton within a fortnight of the acceptance of the bill, which would, therefore, be really financing his cotton factory. [106] The figures for 1910, for example, are in the issue which was obtainable in England early in 1913.